Asia's second richest person Li Ka-Shing is suing Goldman Sachs Australia over $15.9 million in incorrectly charged fees linked to his takeover of one of Australia's biggest gas companies.

Mr Li's Australian Gas Networks, formerly known as Envestra, has filed action in the Supreme Court of Victoria to claw back the fees it paid to Goldman Sachs relating to the takeover of Envestra in 2014 by a trio of companies backed by the Hong Kong businessman.

Cheung Kong Infrastructure, which is led by Hong Kong's richest man, Li Ka-Shing, has already battled the ATO and may face the impact of this latest crackdown.Credit:Tomohiro Ohsumi

Cheung Kong Infrastructure recently made headlines in Australia when its offer to buy Ausgrid was rebuffed by the Federal Government over concerns of Mr Li's links to Chinese politicians.

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Goldman Sachs issued an invoice in August that year seeking $16 million in fees.Credit:AP

The stoush between Australian Gas Networks and Goldman Sachs comes after an extended period of private wrangling between the multi-billion company and its owner – who is a self-made billionaire and the 20th richest person in the world with a fortune estimated at $43 billion – and the Australian arm of one of the world's biggest investment banks.

Yet a spokesman for Australian Gas Networks told Business Day: "This legal matter has no implications for AGN's current business activities or wider relationship with Goldman Sachs.

For its part, Goldman Sachs Australia declined to comment on the specifics of the case but it is shaping up to be quite the legal battle with a spokeswoman saying: "We are disappointed to have been unable to conclude this matter amicably but feel strongly that the claim has no merit and we will contest it."

At the time of the Cheung Kong consortium bid, Envestra had already agreed to a deal with APA Group, which at the time owned a 33 per cent stake in the company that owns about 23,000 kilometres of natural gas distribution networks and serves more than 1.2 million consumers in South Australia, Victoria, Queensland, NSW and the Northern Territory.

APA Group was trumped by Mr Li's higher all cash offer and eventually sold its stake into the Hong Kong tycoon's deal.

The new owners swiftly decided to change Envestra's name to Australian Gas Networks.

The takeover of Envestra by the Cheung Kong consortium in 2014 was one of the biggest deals in years and briefly pushed Goldman Sachs to the top of the league tables for investment banks.

Envestra appointed Goldman Sachs its financial adviser in 2009. In 2013, the investment bank brokered a separate fee agreement to help Envestra find would-be buyers of the business.

Australian Gas Networks alleges its fee agreement with Goldman Sachs expired in March 30, 2014 – more than a month before Cheung Kong lobbed its superior offer for the company on May 7.

According to court documents, Goldman Sachs issued an invoice in August that year seeking $16 million in fees from Australian Gas Networks for advising the company.

​Cheung Kong Infrastructure initially believed Australian Gas Networks should not pay the fee "until Cheung Kong Infrastructure, as the new effective owner of Australian Gas Networks, had an opportunity to consider the amount of the payment", it said in its statement of claim.

However despite Cheung Kong's request for more time, Goldman Sachs issued a second invoice within days which was paid by Australian Gas Networks. It now says it was mistaken in making the payment.

"AGN mistakenly believed that it had a contractual obligation pursuant to the fee agreement to pay Goldman Sachs the claimed transaction fee and claimed incentive fee by August 20, 2014," the company said in its filing.